ESMA proposes changes and updates timeline for its Guidelines on funds’ names
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today provides an update on the status of ESMA’s guidelines on ESG and sustainability-related terms in fund names, including details on the timing of their publication.
Since the launch of the work on the guidelines, the AIFMD and UCITS Directive reviews have progressed. ESMA has decided to postpone the adoption of the Guidelines to ensure that the outcome of these reviews may be fully considered. In particular, the text of the provisional agreement resulting from the interinstitutional negotiations contains two new mandates for ESMA to develop guidelines specifying the circumstances where the name of an AIF or UCITS is unclear, unfair, or misleading.
ESMA plans to adopt the Guidelines shortly after the date of entry into force of those amended legal texts and is publishing this statement to highlight the key content of the guidance that it intends to provide in the forthcoming Guidelines.
Next steps
The Guidelines are expected to be approved and published in Q2 2024, subject to the timing of the publication of the AIFMD and UCITS Directive revised texts. The Guidelines would apply three months after the date of their publication on the website in all EU official languages.
Managers of new funds would be expected to comply with the Guidelines in respect of those funds from the date of application of the Guidelines. Managers of funds existing before the date of application of the Guidelines should comply with the Guidelines in respect of those funds six months from the application date.
Further information:
Dan Nacu-Manole
Communications Officer
@ Email: press@esma.europa.eu